CBSA to Test IBM and Maersk Blockchain Platform

IBM (NYSE:IBM) and A.P. Moller-Maersk announced on Thursday (October 25) that the Canada Border Services Agency (CBSA) will trial run a blockchain-based digital shipping service jointly developed by the two companies.

The solution, called TradeLens, was first revealed in August by IBM and Maersk and aims to provide secure real time data tracking in shipments through supply chain.

According to Thursday’s release, CBSA is one of the first border agencies to test the platform out of 94 organizations already participating in the TradeLens platform.

“The CBSA is participating in the TradeLens pilot to determine what role the platform could play in its business processes,” the press release says.

Through the trial run, the CBSA is looking to see if the solution can improve the quality and timeliness of commercial data, increase cargo movement visibility past the first port of arrival, and limit the number of transactions when it comes to making release decisions for shipments.

“This development is an example of the Government of Canada using innovative technology to easily and securely facilitate trade and engage in global trading ecosystems in a modern, productive manner,” John Ossowski, president of CBSA, said in the release.

Prior to TradeLens’ launch in August, the platform underwent a 12-month pilot that tested ways to prevent delays resulting from documentation errors and information delays among other things. Participants included over 20 port and terminal operators, customs authorities, cargo owners, freight forwarders and transportation and logistics companies.

TradeLens is hosted on IBM Cloud and is estimated to minimize how long it takes to ship packaging materials to a production line in the US by 40 percent.

It was also announced on Thursday by IBM that the Port of Montreal together with CBSA will pilot the TradeLens solution.

The Port of Montreal is the largest container port in Eastern Canada with five container terminals and its own railway within the port territory. As such, the Port of Montreal will work with the Montreal Gateway Terminals Partnership (MGTP), which receives Maerks’ vessels.

Through collaboration, the Port of Montreal will provide MGTP information on the movement of vessels and containers from Maersk. From there, the data will be implemented into the TradeLens platform to improve the clarity of Montreal’s logistics chain.

“TradeLens is fully aligned with our objectives and business strategy centred on innovation and efficient shipping,” Sylvie Vachon, president and CEO of the Montreal Port Authority, said in IBM’s release.

TradeLens is currently only available through a limited available offering, but is expected to become commercially available by the end of 2018.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.